March 17, 2025 – In an interview with Chasing Cars, Thom Drew, the Regional Director for Tesla in New Zealand and Australia, revealed that with the launch of the new Model Y, Tesla aims to abandon its strategy of frequent price adjustments to better compete with Chinese electric vehicle manufacturers.
Drew emphasized that the new Model Y will come with a more consistent pricing strategy in the Australian market. The Model Y had already become Australia’s top-selling electric vehicle in 2024. With further reductions in the Model Y’s price, Drew believes that Tesla’s era of price wars seems to be coming to an end.
“We definitely won’t be trapped in a price war,” Drew stated. “Over the past few years, Tesla has been known for its frequent price adjustments. However, we’ve now reached a reasonable price level. Once the mass-production pricing for the new Model Y is announced, I think we’ll be in a great position. Especially for the upgraded vehicles, the cost-performance ratio is extremely high.”
The first deliveries of the new Model Y in Australia are expected to begin in May, and Drew noted that the initial batch will be significant to meet the high demand for this electric vehicle. He also confirmed that the highly anticipated Rear-Wheel Drive (RWD) version, whose Launch Edition has sold out, will be reintroduced as a regular version in the coming weeks.
Currently, consumers can still order the Long Range and All-Wheel Drive (AWD) Model Y Launch Edition through Tesla’s online configurator.
While it’s unclear whether Tesla will apply a similar price stabilization strategy in markets beyond the Asia-Pacific region, Drew stressed that this measure is necessary to compete with Chinese electric vehicle brands. He pointed out that Tesla will continue to focus on product quality and competitiveness, optimizing the consumer experience to maintain its leading position in the electric vehicle market.
“We must ensure our product quality and competitiveness,” Drew said. “We need to ensure that we provide the best ownership experience to stay ahead in the market.”
Drew also mentioned that the Model Y is currently the most affordable electric vehicle in the Australian market. He emphasized that maintaining price stability will effectively fend off competitors in the coming period. Additionally, reports have suggested that Tesla may be considering launching a cheaper version of the Model Y in China, which will further enhance the model’s market competitiveness.
“At present, I haven’t heard of any models cheaper than the Model Y,” Drew added. “If there are, we’ll certainly consider it.”
It’s worth noting that the Australian market requires Right-Hand Drive (RHD) vehicles, meaning the vehicles drive on the left side of the road with the steering wheel on the right side of the car. Tesla’s Shanghai Gigafactory supplies vehicles to multiple markets in Australia, New Zealand, and the Asia-Pacific region.
Tesla launched the upgraded Model Y in China in January this year and began delivering the first Launch Edition vehicles there last month, officially selling the regular version starting from early March.
